The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. dropped 8.4 percent in the week ended March 13, following a 55.4 percent surge in the previous week. This was the biggest decrease since the week ended November 29 of 2019.

According to the report, refinance applications tumbled 10.4 percent, while applications to purchase a home decreased 0.9 percent.

Meanwhile, the average fixed 30-year mortgage rate rose to 3.74 percent from 3.47 percent.

"The ongoing situation around the coronavirus led to further stress in the financial markets late last week, with unprecedented volatility and widening spreads. This drove mortgage rates back up to their highest levels since mid-February," noted Joel Kan, an MBA economist. "The Federal Reserve's rate cut and other monetary policy measures to help the economy should help to bring down mortgage rates in the coming weeks, spurring more refinancing."